On KATV: The New Homeready Mortgage

Posted by Blake Montgomery on Jan 16, 2019 4:19:27 PM
Blake Montgomery

The HomeReady Mortgage from Fannie Mae will help you meet your dream of owning a new home in 2019! Watch Allan and Chris to learn more.

 From January KATV Interview With Allan Huddleston


No headphones? No problem! Read the transcript below!



Chris: "Welcome back everybody
the time now is 9:20 to on our Friday
edition of channel 7 daybreak Allen
Huddleston of the bank of Little Rock
Mortgage is here telling us more about the
new home ready mortgage and how it can
benefit millennials so even if you're
not a millennial and you maybe have kids
that are or grand-kids listen up because
this is a great opportunity and Allen
thanks for coming in explaining this."
Allan: "T
hanks for having me."
Chris: "A program I wish I
knew about when I bought my first house.
First time homebuyers,
millennials, think a lot of times how am
I going to afford this.
What's the big thing you probably hear the most?
Down payment?"
Allan: "Right this is something that is helping
curb that fear a little bit."
Chris: "How does it work?"
Allan: "Absolutely so Fannie
Mae just wanted to design a loan that
targeted the Millennials we call them
Millennials I mean really it's an age
group anywhere 18 to 35 but that's a
that's a large group of potential
homebuyers who are still renting so they
wanted to come out and and come up with
a loan program that would really add
some incentives and some benefits to
kind of get them off the fence and get
them into homeownership so it comes with
a low downpayment but also some
additional incentives on top of that to
really kind of pull these buyers into
the market."
Chris: "and one of those incentives
PMI lower PMI"
Allan: "absolutely"
Chris: "You don't put
20% down you got the PMI which over time
can rack up so what's what's the
Allan:"Absolutely so the PMI, the
reduction the PMI is absolutely a
benefit of the low down payment there are
other loan programs that offer a low
down payment so in addition to that
you've got the lower PMI and you also
have lower interest rates with
the home 
ready program so you know you
add all that up you add up the lower
rates you add up the lower PMI and you
take the low down payment and it really
it really should drive some of these
some of these buyers that just don't
have a lot of cash and really want to
keep that monthly mortgage payment down
as much as they can 
as little down as 3%."
Chris: "N
ow you look at a graphic
Millennials  36% of homebuyers
are in that age group the largest that's
right of our entire country which is
incredible to think about what that's
where we're at these days so 3% down
why did they think it's so important it
just because the large group or is it
not enough for bard they're not enough
buying right now?"
Allan: "Well I'm sure well they're
looking at you know the percentages
that are renting right now and so
they've looked at surveys some of the
real estate websites truly have done
surveys and they've asked the this group
of buyers you know what is it what's
holding you back
and the answer they got time and time
again was the down payment so Fannie Mae
said you know what let's develop we
already have some low down payment
programs let's go a little bit further
let's also offer the low down payment
but let's add lower PMI lower interest
rate let's add something to really get
them off the fence because right now
they're not  so that's that's where
they where they came from with this and
that's how they're pushing it ."
Chris:" And other
thing to not just folks who are renting
folks who are moving back in with their
parents after school that larger number
ever and that continues to grow to try
to save money
for those perceived big down
payments so this is an opportunity that
maybe they can get their own house a
little bit earlier absolutely okay how
about qualifications for this I'm sure
there are certain things other than
being within that age group what are
Allan: "Right absolutely
so qualifications
are similar to other loan programs this
program is really geared more towards a
buyer that has average to good credit
it's really not a program if the credit
is poor there are other programs that
are better suited for that so
credit score is certainly important 620
is kind of a minimum credit score but
typically you're gonna see better better
pricing, lower interest rates better PMI
if you're in that 680 or above credit
range so if you fall in that overall the
approval should be there
and again the terms will just improve as
you go higher in that credit score range."
Chris:"What about income limits?"
Allan: "Income limits,
absolutely so there are the potential
for income limits with this program it
really depends on where the house is so
basically what they do is if you have
different areas in a given City and
those areas are given kind of an average
income so if I'm buying a house in that
area and I make more than what is
been established for the for the income
level there that I might not qualify for
this program but the great thing that
the great thing that they do is they
take certain areas which may be lower
income areas they may be under served
markets and they waived the income limit
for those areas so not only does that
help the buyer that really boost some of
these communities that need a little
Chris:"how can people learn more
about this I'm sure this is something
you have to ask about."
Alland: "Yeah absolutely
yeah there's a lot of detail involved
this program so you know always say you
can visit our website and that's great
this is one where I probably would call
okay and actually talk to myself talk to
another loan officer in our office so we
can really kind of go through the
details with you or just set up an
appointment and come in and we can meet
in person sit down let's make sure that
you meet you know the criteria for this
program so absolutely you can reach us
at 501-219-9100 and again if you do want to
visit our website there is some good
information there at"
Chris: "Okay you can follow their social media
too and
rates right now how are we
looking great overall rates are they still
Allan: "they kind of started ticking up
a little I saw that yeah they did and it
but now they're kind of dipping back
when we're seeing a lot of volatility in
the stock market and anytime you have
that you can kind of see rates kind of
inch back down a little bit so it's a
great sign hopefully it'll
stay down there"
Chris: "Hope
for all the buyers out there they stayed
thank you so much for coming thank you
explain all this"